Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Tourism and Culture, to which was referred S.B. No. 2396, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to exempt from the general excise tax income derived by associations or organizations from private contributions and from registration, exhibit, or advertising fees associated with conventions, conferences, and trade shows.

The Hawaii Tourism Authority, Hawaii Hotel & Lodging Association, and The Legislative Center submitted testimony in support of this measure. The Department of Business, Economic Development, and Tourism and the Department of Taxation supported the intent of this measure, but opposed it because the potential loss in revenue would be too costly for their available budget resources. The Tax Foundation of Hawaii offered comments.

As affirmed by the record of votes of the members of your Committee on Tourism and Culture that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2396, S.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Finance.